On Monday, Microsoft Corporation MSFT confirmed additional job cuts, following the 10,000 layoffs announced in January. The exact number of cuts in this latest round remains undisclosed.
What Happened: The software giant is making further reductions to its workforce, a week into its 2024 fiscal year, CNBC reports.
This follows a similar pattern from last year when Microsoft also announced a small number of cuts around the same time. The company has been witnessing clients seeking ways to save on their cloud computing expenses, a trend that has been observed across the tech industry.
Microsoft’s CEO, Satya Nadella, issued a memo in January, indicating a change in the company’s hardware lineup and a consolidation of leases. The company also filed a notice on Monday, stating it would cut 276 jobs in its home state of Washington, 66 of which are virtual. The affected employees include salespeople and customer success representatives.
See Also: Ex-Amazon Employee Explains Why Layoffs Keep Happening At Large Tech Companies
Why It Matters: The recent layoffs are part of a broader trend in the tech industry. Tech companies have been shedding workers in response to macroeconomic pressures and changing customer priorities. Microsoft’s layoffs have reportedly targeted the AI team, as the company intensifies efforts to release AI tools faster than its competitors.
These layoffs come after Microsoft denied plans for workforce reduction earlier this year, only to announce a cut of approximately 10,000 employees, representing less than 5% of its workforce. The layoffs have also followed a period of high salaries at Microsoft, with offers in 2022 ranging from $77,000 to $310,000.
These layoffs could potentially fuel the creation of new startups, as laid-off tech workers look for new opportunities or decide to start their own companies.
Read Next: Microsoft’s GitHub Lets Go Of India’s Engineering Team, Affects Over 100 Jobs
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